Bluntly Media Valuation

WACC calculation
For WACC, I assumed MRP as 5% and beta calculated from the exhibit 9 of the
betas. For beta calculation I have taken average unlevered beta which is given and
for D/E ratio, I took average Debt and average equity.
Formula to cal. Levered beta= unlevered beta*(1+ (1-tax)D/E ratio).
Risk free rate and cost of debt are given. For cost of equity I used CAPM model.
WACC= D/V*Kd(1-tax)+E/V*Ke = 5.7%

PV of the firm by FCFF

Assumed growth rate taken was 3%, as it should not be taken more than the
industry growth, I can also took max 3.2% not more than that.
Sales predicted on the basis of assumed growth rate.
Cost of sale, operating expenses, other current assets and depreciation predicted on
the basis of the average of previous years.
Working capital= current assets current liabilities
Capex= change in Fixed Assets
FCFF= EBIT(1-tax) + depreciation change in WC Capex
PV of intermediate CF= PV of all the cash flows given @WACC calculated.
=NPV(B53,F38:J38)

PV of Terminal Value =K39/((1+B53)^6), this is for 6 years @WACC

calculated for the calculated TV.
So, PV of the firm calculated by adding PV of Intermediate CF and PV of
Terminal Value.
PV of the Firm= 22,359.15